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IMPROVING THE MANAGEMENT OF LEARNABLE FUNDS IN COMMERCIAL BANKS IN NIGERIA



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IMPROVING THE MANAGEMENT OF LEARNABLE FUNDS IN COMMERCIAL BANKS IN NIGERIA

 

 

ABSTRACT

This study centered on improving the management of loanable funds in commercial banks. The study was comparative in nature, using the Trade Bank of Nigeria (TBN) and the Inland Bank of Nigeria (IBN). These two banks were chosen because of their accessibility, high rate of mobilization of deposits, and loan defaults. The major instrument used for data collection included oral interviews, bank records of daily operations, annual reports, and statements of accounts. Four hypotheses were formulated in line with the statement of the problems.

The data obtained was organized and analyzed with the use of the chi-square test for goodness of fit, coefficient of correlation, percentage of loan chart and component bar chart were also used respectively where necessary. The study finally revealed if the incidence of loan default was continuously on the increase/decrease and if such increase/decrease was more in government owned banks or in privately owned banks.

It also saw if such increase/decrease was higher/lower in relation to deposit mobilization. In order to find solution to the problem, it was suggested that banks should adhere strictly to the principles of good lending, improve on security valuation, ensure that men of high integrity are employed at the credit department and emphasize on prudent supervision and control of loan accounts. Other suggestions were purely focused on advisory and credit worthiness for effectiveness and proper management.

 

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IMPROVING THE MANAGEMENT OF LEARNABLE FUNDS IN COMMERCIAL BANKS IN NIGERIA

 

IMPROVING THE MANAGEMENT OF LEARNABLE FUNDS IN COMMERCIAL BANKS IN NIGERIA


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